[Calc Review] Help me analyze this deal

[Neil Greene]

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Greetings BP,

Great to be here again. I've got a duplex report posted here and I'm looking for that great BP advice.  This duplex was built in 1989 and is lead free (important in Mass).  I think it could go for about $165k-$170K. The realtor is friends with the owner and also a friend of mine--owner just wants to sell to purchase a property for her daughter.  I've been in the property and it needs no work. C class neighborhood.  Kind tenants. One is on Section 8.  Rents are currently $800 each unit, one is a two bedroom, the other a 3.  The three should have rent raised, so I put $1700 for rent just to be conservative.

According to the 2% rule this project is not good enough.   But the cash flow looks good, at $500+ a month. (I don't deduct for vacancy as I have an emergency account that I use for rental issues).

Question is this property worth it. I think it could be low maintenance and cash flow positive regularly.  Not the greatest neighborhood, but not terrible. I just thought, although the sale price is somewhat discounted, I could probably find a duplex with six bedrooms, lead certs around $180K and rent for $2600.  The think with the 1989 duplex is no work needed, easy tenants, and cash flow. Maye sell it after a year or two after gaining a little equity and selling closer to market rate?
What do you think?

Thank you kindly!

*This link comes directly from our calculators, based on information input by the member who posted.